After all, can it rise again?
In the past three days, while yellow metal had very volatile days, it's falling for the third day in a row, mainly because of much stronger USD.
Besides the increasing market risk, which sent the US dollar index to its highest level since November 2020, better than expected Employment data and a rise in the leading economic index in July again fueled the DXY to higher levels.
This contradiction in reasons that decrease and increase the prices creates an uncertain environment, which means positive for market bulls. Generally Gold market is the competition scene between bulls and bears. The same movement that we can see in the VIX chart in the past few days. US-10 years Bills, the market benchmark fell to 1.123 in past days, again raised above 1.30 and finally decreased under 1.25%.
As we can see in the bellow figure, these uncertain signals still hold the gold in a clear uptrend.
From the technical point of view, if we check the H1 chart, we can see the volatility mentioned earlier. On the other hand, the H4 chart tells us we can not confirm any specific signal after free fall and sharp regains. In this kind of situation, we can highlight the key levels and trade based on them. For the mid and long term, 1,798 is the critical resistance; breathing above this level will be a bullish signal, while 1,765 is the key support, and breaching under this level will open the doors for lower levels and use it for a sell signal.